OVERVIEW

The performance of the Philippine economy has improved over the past three years, as reflected by strong growth with low inflation, steady improvement in the government fiscal position, and continuing appreciation of the peso against foreign currencies. In 2007, the Philippine Government estimated GDP growth at 7.3%, the highest in 30 years and above the ASEAN 5 average growth of about 6.3%. The growth was due to higher spending on infrastructure, a record external payments surplus, falling interest rates, recovering financial markets, and strong consumption fueled by remittances of overseas Filipino workers. Despite these improvements, the Philippines faces the broad challenges to reducing poverty and achieving domestically-generated and sustainable economic growth. At the broad level, there is much to be done to sustain and expand upon the economic gains.

USAID's economic growth activities promote transparent institutions, improve tax collection efficiency and reduce tax leakages, improve trade facilitation and efficient customs administration, and promote economic development of Mindanao through the development of infrastructure, improvement of governance and social services, and expansion of economic opportunities.

CONTACT INFORMATION

Chief, Office of Economic Development and Governance
Tel. No. 552-9800 Fax No. 552-9999
E-mail: infoph@usaid.gov

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